Toronto,Ontario - April 15, 1997

South American Gold and Copper Company Limited Updates Exploration Progress at Pimenton, the Halcon Program and its Catedral/Rino Limestone Deposits

Toronto, Ontario - South American Gold and Copper Company Limited ("SAGC") announced today recent exploration results and operating plans for its Pimenton mine, exploration activities on its Halcon Program and drilling progress at Catedral/Rino.

PIMENTON

3,300 metres of a diamond drilling program initiated in late December 1996 on the Lucho area at Pimenton have been completed. This exploratory diamond drill program was designed to confirm that the high grade veins identified to date at the Lucho area continue at depth and to confirm the presence of stockworks and stockwork mineralization at depth. Both objectives were achieved.

Dr. David R. S. Thomson, EVP and Director of Exploration, stated that the deepest diamond drill hole, TDDH-2, of the program which consisted of drill holes TDDH-1 to TDDH-11, intercepted the Lucho vein 250 metres below the drill station which was located on the 3430 level, currently the lowest working level at the Lucho area. The true thickness of this drill intercept was 0.47 metres grading 21.3 grams of gold per tonne and 7.1% copper. Drill hole TDDH-4 also intercepted the Lucho vein at 136 metres below the 3430 level grading 50.6 grams gold per tonne and 2.3% copper over a true thickness of 0.46 metres. TDDH-4 was also the most successful drill hole in intercepting stockwork mineralization. TDDH-4 intercepted stockwork mineralization in three veins below the 3430 level. At the Nicole Vein 1.00 gram gold per tonne was intercepted over 18.20 metres at 29 metres below the 3430 level; at the Gina Vein 3.20 grams of gold per tonne were intercepted over 6.10 metres 47 metres below the 3430 level and at the Lucho Vein 2.38 grams gold per tonne were intercepted over 3.40 metres 81 metres below the 3430 level. Drill holes TDDH-1, 2, 3 and TDDH-5, 6, 7, 10 and 11 intercepted anomalous stockwork material. These drill holes are significant to us in demonstrating the presence of stockwork material at depth.

Dr. Thomson stated that further mapping and sampling of the 3,300 metre drill program will be conducted during the upcoming Chilean winter season. Remapping and further sampling of the drill core will give us a better understanding of the structural behavior of the stockwork mineralization which grades 4.0 to 8.0 grams gold per tonne on the 3430 and 3470 levels in association with the high grade veins in certain sectors of the Lucho area. An aggressive drilling program will be initiated following this year's Chilean winter season, which ends in October, to further delineate the location of additional stockwork mineralization below the 3430 level at the Lucho area.

Representative drill hole intercepts, assayed by Acme Analytical Laboratories, Ltd., with assaying laboratory facilities in Vancouver, B.C., and Santiago, Chile, gave the following results:

High Grade Intercepts
below 3430 Level at Lucho area

Stockwork Intercepts 1.0 gram or above
below 3430 level at Lucho

Anomalous Stockwork Mineralization
below 3340 Level at Lucho

Diss. in the above table = Disseminations

Figure I shows the relationship of drill holes TDDH-7, 4 and 2 to the known veins on the 3430 level at Lucho. Figure I also shows drill holes DDHI-17 and DDHI-18 drilled earlier in the year with a small drill machine which also had high grade intercepts.

The Company also announced that in March a drill fence of five diamond drill holes angled at 45 degrees totaling 1350 metres was drilled across a very strong gold geochemical anomaly running for over 1000 metres on the surface just below the northwest trending Pimenton ridge and to the south of the ridge. This drill fence was drilled at right angles to the strong northeast structural trend common to the veins in the Lucho area. Zones of silicious pyrite stockwork were found with trace volumes of gold. Figure II shows the drill fence and an outline of the geochemical anomaly.

Dr. Thomson stated that gold anomalies of large size in the high Andes have to date always been related to gold mineralization and in his experience, usually successful in identifying commercial ore bodies. We have yet to find the source of the anomaly on which the five holes were drilled. The anomaly is complicated by extreme topography and surface leaching. The drill fence program will assist us in narrowing the search for the source of this gold anomaly on which we will conduct further drilling after the Chilean winter season.

Another anomalous area at Pimenton with low grade stockwork potential buried beneath glacial deposits lies to the east and west of the two lower levels, the 3275 and 3180 levels, on the Maria Elena vein. A 107 metre horizontal diamond drill hole by SAGC drilling toward the northeast encountered several intercepts grading 0.3 grams gold per tonne and .3% copper in disseminated sulphides in strongly silicified tuff spread out over its length. A drill hole, put down by Newmont Mining when it held the property, just to the west of the Maria Elena 3275 portal encountered persistent trace gold mineralization over 25 metres. This area, the anomalous zone centred on the south of the Pimenton ridge, the more recently identified anomalous zone on the north side of the Pimenton ridge and the veins and stockworks in the Lucho area will be the focus of the next phase of our exploration drilling program during the spring/summer season in Chile.

The Company also stated that operations at Pimenton during the Chilean winter months of May to October will be curtailed. During this period, the Company, in conjunction with Behre Dolbear & Company, Inc., will finalize mining and exploitation plans for stope development to bring its mill at Pimenton up to its production capacity of 200 tonnes per day as a first step in the Company's plans for further plant expansion in the future. Once production stopes are completed in December of this year the average head grade of ore into the mill is expected to be 10.5 grams gold per tonne, which at 200 tonnes per day is estimated to achieve a cash cost per ounce of gold of $212.00 to $225.00 per oz.

SAGC's strategy at Pimenton is to explore, develop and mine the high grade veins in order to improve its knowledge of the district, identify drill targets and to generate cash revenues from mine operations to finance ongoing exploration. During the next summer season an intensive exploration drilling program will also be conducted for bulk tonnage possibilities within promising gold bearing zones at Pimenton.

HALCON

The Company is currently conducting a high level of exploration activity on three prospects included in its Halcon Program. A total of seven senior geologists supported by five junior geologists and one geophysicist have been assigned and are actively working on these three Halcon projects.

On one of the prospect areas, on which the greatest emphasis is currently being placed, strong gold anomalies have recently been identified extending over an 8 kilometre by 1 kilometre area. One highly anomalous area measuring approximately 4 by 1 kilometres within the 8 kilometre sector is currently the site of an intensive geophysical program expected to be completed in early May. This program will define targets for trenching and follow-up drilling. The Company previously conducted a detailed stream sediment sampling program over a substantial part of the prospect area. 167 stream sediment samples were taken, of which 32 were run through a Knelson Concentrator, all of which indicated the presence of gold. Working in conjunction with the Geological Department of the University of Chile, the Company has recently established that the system contained within the prospect area is active in its production of gold. It has also been able to establish that the gold sampled from the stream sediment samples has in some cases traveled less than 300 metres. The Halcon prospect areas are not within the snow belt area of Chile and will be the focus of a substantial and intensive exploration and drilling programs by SAGC during the coming months.

CATEDRAL/RINO LIMESTONE DEPOSITS

The Company also reported that 1,200 metres of a planned 2,600 metre drill program on its Catedral/Rino limestone deposit is progressing near schedule. A consultant from Behre Dolbear & Company, Inc., which is advising SAGC on this program, recently visited the drill site and reviewed the first 1,200 metres of drill core corresponding to the first two 600 metre diamond drill holes, one of which was drilled on Catedral and one on Rino. Preliminary indications are highly favorable. There are currently two diamond drill machines, one each at Catedral and Rino. The final analysis of the drill core by independent laboratory analysis will determine the limestone's exact chemical balance for the manufacture of Portland Type I cement. The Company expects to begin receiving laboratory assay results within 45 days.

SAGC is a mineral exploration company with extensive gold properties in Chile and Peru. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG.

For further information and copies of Figures I and II: Stephen W. Houghton, President and CEO; William C. O'Donnell, EVP and CFO (odonnell@sagc.com). Telephone: (212) 983-9300, fax: (212) 983-9314.